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tv   In the Loop With Betty Liu  Bloomberg  September 26, 2014 8:00am-10:01am EDT

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i'm betty liu. it has been a terrible week for those long in the stock market. markets are a little calm her today but it raises the question, how low can we go here? we are all over the markets as the countdown to the opening bell. that's good to- our top headlines. stocks in europe are rebounding after yesterday's selloff. futures indicate stocks will be little opened -- little changed at the open. the british parliament debating whether the u.k. should take part in the coalition against the islamic state. british forces would be authorized only to attack in iraq, not syria. believes to have the identity of the man who conducted those beheadings but will not say. money to buy ang
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stake into a chinese chip acre. dip the most in nearly two months yesterday, setting the index closing down over 2% for the week. all companies except for 14 on the s&p were down yesterday. julie hyman has much more. let's put this in context. >> the s&p 500 was at a record as recently as september 18 and hasn't been losing ground. down only 2.3% from that time but we have seen a change in about whatconcerns is happening geopolitically around the globe in russia in particular. of course, the continuing situation in the middle east, what effect will that have on oil and other segments of the market. then in the background, the fed,
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when will that raise rates, what effect will that have? you see the three major averages. we still have not seen that 10% pullback in more than three years in the major averages, but yesterday, $320 billion are raised from the value of the s&p 500. i should also mention apple contributing to that over concerns of its latest operating system update. the vix,lso see another way to measure the concern that we had yesterday when we had a rough in stocks. this morning, as you mentioned, little changed. we have not seen a four-day losing streak for stocks this year. today would be the fourth day. we have not had this consistent
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so far this year. until recently, stocks have been generally rising. >> thank you, julie. in company news, blackberry reported a smaller second-quarter loss than wall street expected. revenue fell to $960 million, compared with $949 million estimated. targeting breakeven cash flow by the end of 2015. this week the ceo spoke with bloomberg television ahead of the report to talk about when he thinks the company will be profitable. i told people that we will be sometime 2015. i am still standing by that. depending on the receptivity of the phones, the classic coming out in two months, our software releases. i expect to see growth next
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year. growth on the top line, i could make a profit sooner. >> it looks like he is talking on his phone. ipoeems like the alibaba brought a peak in the markets and since then, the s&p has been taking and bears are piling on. up to 8.9 million shares are shorted against alibaba. to kick things off this morning, i want to bring in my guest post, someone with one of the most acceptable 10 years of any media ceo. bob wright is the former chairman of nbc universal. great to have you here this morning. you recall, the last time are on, something else happened in the markets. you pick the best days to come on. do you think we are at a peak year in the markets? >> i doubt it. you have treasury selling at negative yields.
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you cannot get bond yields that are attractive. you have, i think, a stock pickers market right now, instead of just an index market. companies will be looked at for ratios and earnings, but there is no place to go in equities. you are not going to be buying negative yield in bonds. the fed has reinforced that they would not raise rates. it is an equity market, regardless of whether some go up or down. >> for ceos, it has been a goldilocks period. stock prices have gone up, they have not had much do with it, just momentum here. poor for mostbeen of the past five years. the market was just at 6000 in 2009. may have had the opportunity to have enormous productivity
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increases. if there is no demand, they go after productivity. unfortunately, that is a negative side. however, they are stronger than they have been in many years in terms of their capital structure, their ability to deal with a growing market. i would say that is a positive for equities on the long-term, in good shape, not overloaded with debt. they probably would like to be at these rates. >> we will talk more about this, media stocks have been hit quite a bit this past year. broadcasters in general. >> they have had a 50% increase in the past month. >> a huge rally. talking about taking some shine off the top. bob wright is my guest host of the hour. let's move abroad to the debate in the u.k. parliament over whether the country should join the u.s. and its arab allies in
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airstrikes over iraq. a vote is expected at noon eastern time. with guy get more johnson from london. what is the latest from parliament? >> the prime minister has been laying out the case for air strikes. he says there is a legal basis for these strikes to take place. he also says there is a clear danger to the british people and that this is something the u.k. should not subcontract out to other countries. he also didn't make it clear that this was something that would not be over quick. this is patience and persistence, he said, rather than shock and awe. >> this is going to be a mission that will take on just months but years, but i believe we have to be prepared for that commitment. the reason for that is, i think quite rightly, america, britain, and others are not contemplating
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putting combat troops on the ground. there will be troops on the ground but they will be a troops, kurdish, and we should be supporting them in all the ways that i will describe. >> is the vote likely to go through? >> i think it probably will. senior labour party figures looked like they are backing this, and the love and looks like he is behind attacks in iraq. however, the u.k. has a very big interest on whether or not these attacks are illegal. this is something the u.k. has been grappling with for a long time. this follows on what happened in iraq. the prime minister making it clear he iraqi authorities have asked for airstrikes, which means airstrikes inside of iraq are illegal. -- legal. serious a different matter but
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the iraqi story, the labour party is on board with. looking forward to 2015, there is an election cycle starting. to looknts more like a prime minister and is taking part in foreign policy. so yes, it is expected to go through. >> thank you so much, guy johnson. back in the u.s., the president needs to find a new attorney general after eric holder announced he is stepping down yesterday. , after ary emotional controversial six years at the justice department. you, mr. to thank president, for the opportunity giving me theor greatest honor of my professional life. we have become great colleagues but our bonds are much deeper than that. in good times and bad, and things personal and
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professional, you have been there for me. i am proud to call you my friend. >> both teared up yesterday. peter cook has more on a possible successor. how soon will he be picking a successor? >> a lot of democrats are pushing the president to name someone sooner rather than later because that will increase their chances of getting someone in the job quickly. this all depends on the midterm there.n, what happens if republicans take control of the senate, democrats have a limited window in the lame-duck session to confirm his replacement. republicans do not want to be jammed with somebody under those circumstances. they want to handle it in the new year, in a more thoughtful way. my bed is the president will move sooner rather than later because he wants to get that person in place. certainly, eric holder does.
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he does not want to serve into next year. >> who is running in terms of placeholder? >> massachusetts governor deval bahrara. preet you have the president former white house counsel, you have the solicitor general arguing at the supreme court. are not safe picks, but the easy fix inside administration. otherwise, the attorney general in california, come all harris, thatoretta lynch, someone holder has followed close leak, her work within the justice department. the few days to keep an eye on. >> thank you, peter cook. another form of goodbye yesterday. they do not write script like
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this in hollywood anymore. see what happened at derek jeter's last home game at yankees stadium. and pay tv channel stars looking for a buyer. is rupert murdoch interested? the formerr from president of nbc universal, bob wright, my guest host of the hour. ♪
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>> big hit to right field. here, richardson. richardson is safe. derek jeter in his final game with a walk-off single! >> a storybook finish for derek jeter. he drove in the winning run at his final at-bat at yankee stadium. he is retiring after 20 years with the yankees. he said that once he stepped up the plate in the ninth inning,
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his thought was, don't cry. jeter's final season has been a ratings season boost. eyeballs, especially the younger ones, are going digital. host, formerest chairman and ceo of nbc universal, bob wright. also cofounder of autism speaks. did you see the game? >> i saw a lot of it. it was great. >> are you a yankees fan? >> i am, but i am also a red sox fan. i know that is impossible. i have a home in nantucket. >> this week, all the networks are premiering their new shows. -- competing with the lights of netflix and amazon now. how is this going to shake out? >> there is really no need to
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have a season term. they used to be valuable. they are spending a lot of money on marketing. the reality is, the shows that are alive, like the nfl, are the ones that are getting huge ratings. the networks have shows that really do get ratings like "the voice" and "dancing with the stars." these new shows will sort themselves out and they will probably end up having their life on video on demand or some kind of delayed dvr. >> why is that? it is the numbers game? >> it is the way the world is now. they are spending a lot of money to promote them. once they are promoted, people will sort them out. the networks will still not put all the episodes together. you can go to netflix and you can see all of the episodes.
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amazon will show you the whole season. i'm not sure that is exactly what people want, but people are using it. the internet services will have an impact. that will not necessarily be a dangerous thing for networks. >> why not? >> because they have good shows and they will get watched too. the shows that people end up picking, they have less regulation, they can do tv mature, sexually exquisite, a lot of things that the broadcast networks cannot do. saw that with "orange is the new black." i think we have some video from amazon who is debuting their new "transparent." they are releasing 10, half-hour episodes at once. matter is not a subject that many networks want to have anyway for that particular show. >> it is pretty controversial.
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amazon has said, we are going to pour $100 million into these new shows. the first one did not do too well. me of the movie business. every three or four years, some company comes in and gathers money from all around the world and says we are going to make the most spectacular movies and four years later they spent hundreds of millions of dollars and got moderate reception and then disappeared. that has been going on since movies were produced. movie companies are always sorting through, trying to get financing on that basis. -- does amazon really want to be a television producer at that rate? maybe a dropon is in the bucket for a company that is raking in billions in cash. serious money on a
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television front, isn't it? no question.- >> the question is if it will have a return. >> if you were to advise that the, what would you advise them up, first of all, and what is their ultimate goal? >> they want to be everything that netflix is, but everybody wants to be netflix. before and doing it in a different format. it's a question of whether jeff bezos -- you look at alibaba. they are a lot broader than amazon. -- does he want to do everything that alibaba is? they are acting as a broker and that keeps their cost down. -- he television to it does not make the suits, he does not make the tvs. this is amazon. now he is going to make the television shows and so forth.
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that is a slippery slope. >> we were talking about how shares of media companies have gone down. -- up. 300% since 2009. what is interesting this year is the broadcasters have gone down 24%, but the cable companies have been pretty stable. part of that has to do with all of the m&a activity going on. >> cable companies like comcast, in particular, have really entered the pay business. time warner does a lot of it as well. the good news for the broadcasters, you cannot skip the commercials. so the commercials are in there and then advertising comes back into focus in a different way. 70% of viewership now on video on demand. that is potentially good for broadcasters. my guest host,,
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bob wright, former chairman and ceo of nbc universal. ♪
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>> you are watching "in the loop " live on bloomberg television. good morning, i'm betty liu. a software bug called shell tock being called a threat millions of devices connected to the internet, including computer servers, power plants, and even refrigerators. it affects a free software system used by 70% of machines connected to the internet. a warning for ridesharing companies like uber, lyft, and sidcar. officials in san francisco say take actionll
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unless they change operations, providing misleading information about the drivers backgrounds. sidecar says it disagrees with the claims. samsung and apple are at it again. is released in 4 south korea. trying to be released in china releasedhone are there. meanwhile, some problems about tweeting thatlus, their phone is curved, not bent. we have had an incredible week so far. good news for the bears because they have been right so far. it looks like we may be ending down at least 2%. s&p futures are a touch higher after the del valle 264 points yesterday.
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we are on the markets again in 30 minutes. the controversy continues for the nfl. from the ap asserting that the video of ray rice punching his fiancée was sent to the league's security chief in april. jeffrey miller denies the statements and issued a statement saying -- that is different from what is reported out there. wright,th us is bob former chairman and ceo of nbc universal. media and sports have been common partners for some time. this thing has been getting crazy. this person who initially talked to the ap reporters said that he or she sent the video to jeff miller, along with a note
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saying that this is incredible, you have to see this. somebody from the nfl reported, millers. two jeff maybe the application is the other guy got it. -- this isittle bit the only humor in something that is not humorous at all. >> it is getting to be very ridiculous. >> all of this happened in april. >> this is not just a recent. there have been some repercussions here at the nfl. andle looked at goodell asked, should he go? what do you say? this story has been about men talking about beating up women with other men. and thatbeen going on is not a good angle at all. >> the boys club.
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the lastas happened in week or two is some very prominent women has entered the field. hudson has been appointed a chief marketing officer for the nfl. she has a strong background in marketing. i met her years ago at pepsi-cola. she has been at a consulting business but is very knowledgeable. she was the head of pepsi north america when they started doing big deals with the nfl. that is a positive sign. --e of the on-air reporters first-persondid a commentary on espn that was unbelievably good. she has been in the business 25 years-plus and never did anything like this before. >> another one of their analysts, bill simmons, was suspended for his comments, calling roger goodell a liar. rachel nichols, who is now
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with cnn, came on very strong in the interview. --e nolan >> why is that important to you? >> these are women who come in the past taken a position on things like this. they have done straight down the middle journalism. these situations never happened before. you also have four women who organization, an a domestic violence initiative. that is really important. to say is that we are not at the tipping point. but you will never know will
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you are at a tipping point. most of the buyers are women, 50% are women. is thatne part of this is all important, but we have not seen the dollars. we have not see the money talking. >> we are not going to see that near-term. that is not going to happen. you also do not see any boxing did you get a sponsorship, any they have to get pay-per-view events. this is the same situation right now. they have all kinds of problem's, athletic directors not paying attention. there's something going on here that is very different terms of reaction that we have seen in the past. >> the sunlight is coming down and shining in force. we have breaking news coming
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out. economic's editor mike wiki has more. he is not pimco's bill gross anymore. that billrelease says gross has left pimco and as of september 29 will be running an unconstrained bond fund at janus capital. they will establish a new headquarters in newport beach, california. bill gross operates from and he will manage the fund there. he says he wants to get back to managing client money. it is a huge developing story. stories recently about money of the funds that he manages for pimco, so he may want to get out of the politics of that. willeloping story that we keep an eye on. a huge potential story for the
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bond market and for the investing world that no gross is going to janus capital, leaving pimco. no change in the fourth quarter gdp numbers. looks as if wet have a strong economy in the second quarter. a big bounce back in the first quarter. in a lot of this from health care spending. service numbers go up because of the change in the numbers from obamacare. no real impact on the overall economic thinking at this point and we knew the second quarter was strong going forward. keep an eye on the bond market, keep an eye on the pimco news. is huge news, thank we will stay on that story. mean janusjoy he capital and leaving pimco can we will have 40 moment. stay with us. ♪
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>> some pretty big news. it is not your weather bill gross has left pimco. we did get a press release about ill gross joining janus capital. employment to be the effective on september 29, 2014. you will be managing the janus global unconstrained bond fund. and he isbond king, taking on employment at janus capital. 29,ct if september running their unconstrained bond fund. you certainly know have as one of the big wall street layers. isthe problem here investigation. that is a lot of depositions of
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things of that nature. they both may have come to the conclusion that bill is better off going off on his own about going with somebody else, get out of the building. we will deal with what we have to deal with inside, you deal with the outside. less distraction. >> he has had a tough year. and people now focused on his management skills, they are under a microscope. you have to feel the guys' sp position. he probably regrets that he did not get out. >> while he could have. i want to bring in michael mckee. what do we really know about the situation right now? >> we do not know a whole lot. we just know that janus has put
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out a press release saying that bill gross is leaving pimco and going to join them. they are a large fund, but they are not on the scale of pimco. they have not been major players in this market in terms of setting the agenda. it is very interesting that he chose this company. they are going to set up an office for him in newport beach, because he is very fond of being there does not like to leave. the effect of this is quite dramatic. --ss has been something on been on something of a losing streak recently.
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apparently he has enough of a reputation that people are betting that this is a major win for the folks at janus capital. and will attract a lot of capital. total returned is the biggest on the fund out there -- total return is the biggest bond fund out there. the is an earthquake in bond space. >> i am reading through some of our headlines. bill gross saying this is part of his desire to get back to spending the bulk of his days managing client assets. that is how he built his career. he is going to be based in the janus office in newport beach. >> he will be closer to the beach. >> he is going to be working
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complementary but separate to the credit race to fixed income that form. -- credit taste fixed income platform. thought oflways himself as a traitor rather than a manager. this has not in a lot of one for him over the last 18 months. they were sailing along fairly well reasonable returns. icity, and then mohamed el-erian quit. a lot of negative stories started appearing about his management styles. are stillt they friends. it raises the question of who will succeed mr. gross at pimco. could mohammed al arian come back? payroll of on the the parent company of pimco. ,his is a very interesting move
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especially with his personal situation. he may be wanting to get away from the headlines. >> indeed. theshow great for pimco, but great for janus. we will be right back ♪. . live on bbg television and streaming on your phone, tablet, and at ♪
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>> as we have said, an andhquake in the management bond world. of the bond king bill gross has left pimco. that was announced moments ago. janus capital has hired him. hire him and he is going to stop -- start september 29. he will be managing their global bond portfolio. he will be starting later this month. shares of janus are surging
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right now. the owner of pimco's shares are , even though it has been a hard year for bill gross with mohammed al arian -- el-erian leaving. we will keep on top of that story appeared . to get aning to china foothold in smartphone chips to the world's largest chipmaker spending $1.5 million for a stake in the chip designer. the first bets against alibaba. it week after the company went public.
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the average for the members of s&p, less than 1%. 200,000any has sold sport smartphones. that is all the latest in tech and media, you can catch it every morning on bloomberg west. and the faa has taken steps to pave the way for broader commercial drone use. yesterday the agency granted six phone companies waivers from regulation to fly drones as long as they met certain safety regulations heard i. betweenazing a trail
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businesses. i want to bring in john mcgraw, the founder of aerospace consulting. my guest host bob wright still with me as well. you consulted with these film companies and the motion picture association. how do you tell those who are afraid of these drones, who are anti-drone activist that this will not infringe upon our privacy rights? >> good morning. there is a lot of education to be done to let people know that these will be operated in a very live environment -- very restrictive environment. the film industry is the easiest one to accrue because they tighte in a very environment to make sure that the filming is not observed by someone else.
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>> my recollection as they have been doing it in europe for some time, so it is not a new thing for film companies. do you share any of these privacy concerns at all? >> i do not think it is top of my mind. real estate people have been doing it legally or illegally for some time. it needs to be looked at and followed. i think it is a long-term process. >> what sort of went into getting this faa approval? what do the filmmakers have to promise? set up anve to
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operation with these film operatioors. they have the same type of maintenance programs and qualification programs. all the things you would do to fly a manned aircraft. they have a simple procedure of those for themselves. how much harder is it going to be for the agriculture industry or the real estate industry or for railroads? for them to get approval? i think it will be a little bit harder, but now that we have figured out a process and established a path i think those industries will have a way to get them approved. there are tight conditions where you can constrain these operations so it is safe. i think it will take a little more work. there are 40 applications into
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the faa right now and we expect many more to come in over the coming. months. in hollywood it would seem that they want to adopt technology and use something like this because it will cheapen the cost of making films. having fixed wing aircraft flying over the set is one thing. having helicopters fly over, they are shaky, they are noisy, very expensive and clumsy in some cases. drones are much more efficient. understand -- they are usually out in places where asre are not a lot of people well as i think it will happen. -- hisre things discussion about filing and getting an application is appropriate. >> another group that has pilotd these drones are
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groups. they are worried about their invasion of airspace and safety. how do we know that once these are approved that they are going to be regulated? how do we know they will be monitored and they will not invade airspace where planes are flying? >> therein are restrictive requirements. they have to notify air traffic before they operate and get approval. they have to get approval from the local faa authority. they up to provide notification their filming in a certain area. they have to be more than five miles from an airport. there are future issues to deal with when anger aircraft intentionally flying higher -- when potentially larger aircraft start flying higher. i think the agricultural
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industry will probably get limited approval for remote areas where there is no concern about interaction with any other air traffic. that field is very ripe. plants are very difficult and expensive to inspect them and you can do it with an unmanned aircraft in a minimal amount of time. there are other uses where you either cannot do the operation, or you can do it much safer with an unmanned aircraft. >> thank you so much. thank you also to bob for joining us. a lot of exciting new so far. -- news so far. i want to stay on this news , and bill gross. on the phone right now is a fellow legend in the investing world. the founder of the be
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vanguard group. how taken aback are you? >> totally taken aback and i want to make my position clear. [laughter] to the mutualss fund industry. he has been a pioneer, and has in many respect changed the world of on the investing. he is surely one of the great men of the is this -- of the business. >> does it make sense to you that he would want to make this move? >> i am not such a good mind reader. been ality is there has lot of sniping going on out there. his leadership has been challenged. the sec investigation, and it is only an investigation, we do not know the circumstances, all probably take their toll on a man who may in spite of his fame and fortune he easily hurt.
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we can all be easily hurt. and maybe he woke up one morning and said i do not need any more of this. i cannot read his mind, but that is a possible scenario. in this he industries loss, he is a giant. -- it is the industries loss. he is a giant. can you imagine now they feel now that he has bailed out? >> now i cannot. he was a very strong leader. too strong.ed some said that about me which is why i empathize with him so greatly. if you're going to lead, lead strongly. strengthen opinions breed controversy. wisdom andn your own judgment you must override the opinions of others, and you do
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it. you hope you're right, you think you are right. keep pressing on. >> when you lose such a big manager such as bill gross, what does pimco need to do then? what do they need to do to call down there investors -- to calm down there investors? gross, that pimco fund, has lagged the bond market by about 50 basis points. this is not a catastrophe. this happens in the world. and after beating the bond market index for seven out of the last eight years, and he finally falls behind what people should not be so sensitive. >> thank you so much for joining us.
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much more on bill gross in a moment. ♪
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>> we are about 30 minutes away from the opening bell. here is what we are working on. futures indicate that stocks will be higher at the open. the cell of yesterday was the worst day for equities since july. some big news shaking the market, the pimco cofounder and f investment officer will be leaving. says the new passport smartphone is already profitable. it sold 200,000 of the phone since their unveiling two days ago.
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bill gross leaving pimco for janus capital group h. he will start the new job officially on monday. he will be based out of newport beach, california. ly a years after near and a half of withdrawal. economic editors michael mckee and scarlet fu joining me. this is a total surprise. >> this is a shock because pimco was bill gross and bill gross was pimco. he built it. return fund is still the largest in the world. nobody would have had him leaving. when there was a clash between -- and el-erian there wa
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mohammed left, not him. there was an awful lot weighing on him, including an sec investigation that was revealed someple of weeks ago into of what pimco had done. the whole issue of whether or not he could continue to keep the returns coming to the total return fund because they had into the 40th percentile. >> it had gotten so big it was hard for him to be nimble and the return that investors had gotten a custom two. accustomed to. tradinganus shares higher in the premarket because of his move there. we wonder if the tarnish of the last couple of years and months will be imported with him.
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investor you an are looking that money moving with him. a lot of 401(k) investors are switching their allegiance. it isn understand why happening. >> you camp in i wonder with those that you can. -- you can. i wonder what will happen with those investors. i think the reasons he says he left, or the reasons he would not want to go back to my but and you have to run pimco have a manager run the fund and
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you can expect some withdrawal that will hurt return. i went back to see if there was any idea who has helped to manage this fund, and there is no name links to accept or bill gross. he leads the management of this fund. if you take him out of the equation you do not know who he is left with. with anys the risk fund, mutual, bond, or what not. managershave these identified with their returns, what happens when they leave? you see it time and time again. i wonder if ill gross is going to take the new normal model that he planned out over n turned and that the inter into the new neutral over to
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janus. pimco will probably depend on who takes over the company and who takes over the fund. the gross rent janus part is interesting because the press release says he will manage this fund separately from the fixed income structure that is already in place. so he could in theory have a different economic philosophy. new neutral is constrained by following demographics and government regulation. interest rates will not be as high as they were. conflictight completely with what is available to janus investors right now. but that would silo it off into its own little world. >> he starts within a couple of days. and he gets to stay in newport beach. there, and youg
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do not run a fund by yourself, even if you're the only person listed. we wonder who you might take from pimco, and if that will hurt? hisr if there's a clause in contract that he is not allowed to recruit for a year or what not. >> when they have ever thought that he would leave? >> so many questions around this move. it is shocking. thank you to michael mckee and scarlet fu. billion wiped out in the s&p selloff yesterday. investors sold off across the board and futures on the index are slightly lower this morning showing that we could be set up for another day of huge losses. for more on what to watch when , mikeening bell rings
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reagan joining me. we are all trying to find catalysts here. what happened? thatday raymond james said sometimes looking at the market is trying to read your dog's mind. obviously is quantifiable. apple was the biggest mover as far as what was contributing the most to be loss. the problems with the bendable phone and the ios. 2%.t is only down heavy it is such a weighting that it may technology shares be the largest down. russia may start seizing assets in the future. the iraq situation, warning about a possible subway bombing.
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just general fear of heights. we are god three years without a correction of 10%. so every time there is a dip people get worried. alibaba's ipo became a psychological peak. >> there is not a ton of evidence to back it up, but it gets people thinking. >> one thing that was interesting was that the vicks did not spike along with this drop. >> it has been so low, the volatility has been low all year, and it is a head scratch er why. we are not up anymore than the pace of last year. it is a leading indicator for stocks. >> thank you.
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we're just about 20 minutes away from the opening bell. gross'se on bill shocking departure from pimco. ♪
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>> you're watching in the loop, live on bbg television and streaming on your phone, tablet, and at won a record number , they get on track to be the busiest ipo of 2014. richard, great to see you this morning. alibaba is interesting. is it representing a peak in
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ipos or not? the phenomenal performances going to help the tech at the history, the tech -- tech industry, and the tech ipos. two in 2012, 8 in 2013, i think this is going to be people interested in chinese ipos in general. ,his is a giant, established mature company. it is not a startup with no revenue. it does not represent the frothy nest that some people are concerned about. i think it will renew a lot of interest. the real driver in the world is not the interest in ipos and is the job act of two years ago. >> it is a positive force in the
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market. the jobs act has really increased the supply of ipos. tois an easier prospect consider an ipo, you do not have to spend thousands of dollars on lawyers and bankers to see if the market will accept it. >> you can do a test run? now start to talk to investors, the sec used to have very strict rules. jobslip side is that the act did nothing on the demand side. even though it permitted it, no bank is willing to do it for litigation reasons. the jobs act has increased supply, but not done anything on the demand side. >> the fear that is being generated is that 90% of companies that could ipo have
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now filed to ipo. the market has gone up 25% since the jobs act. we are seeing frothy mess in the pipeline. iness in frothyne the pipeline. >> that is good. funding,a has cut down so these companies need funding. the disclosure is there. it is really just opening up the market to companies that would not have been willing to spend the market before seeing what they were receptive to. >> thank you. the healthout ipos, care companies that accounted ipo's, wef all will speak with the head of one of them.
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breaking news this morning that bill gross is leaving pimco to run janice capitals global unconstrained bond fund. a reporterbring in who wrote a big cover story on the bond fund this year. you spent quite a bit of time with no gross, and he wrote an incredible cover piece on him. all thatve any hint at
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time that further on down the road he might look at a move like this? >> one thing that was very clear through my conversations is that he was very unhappy. to him thatppened happens to a lot of successful investors. he was so good at investing, he is one of the greatest of all time. his organization and his fun to grow exponentially larger and suddenly he was spending a lot of his time doing management duties and trying to do this enormous organization, and he was not able to focus the way he wanted to an actual investing. there are some people who might say that the performance of the funds he was managing reflects that. i think that was make him very unhappy. reported, there was quite a bit of turmoil at pimco. and frustrated by this, and that was quite clear to me.
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new headlinesing coming out. we're now hearing from pimco what they are saying about this. the say he is leaving, board will confirm the election of a new chief investment officer shortly. they say douglas hodge and jay jacobs will continue in their roles. give me your reaction. sent her my reporting on the company, has been trying to plan for this because there was the sense that balanced onirm was bill gross, and there was only so much he could do. in the wake of the departure of el-erian, they promoted six new officers, and they were trying to set the stage for succession. it was clearly on their mind. bill was trying to help with that, but he was also very
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distracted with running the company and trying to address the issues and his investment fund. they were clearly trying to plan, but as often is the case he was larger than life. he built the company from of the, and he was one greatest investing minds for many years. ? >> and sounds like those two guys will continue to run the company along with gross. tell us more about janus capital. >> he is going over to manage the unconstrained on fund -- on nd fund. they have really struggled to expand and strengthen that fixed income business.
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you've to take all of these things into account when you're looking at what could be behind these decisions. >> a lot of reading on what these moves mean. the opening bell is next. ♪
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>> welcome back to in the loop. it is 26 minutes past the hour which means we are on the markets. look at futures right before the open. you can see they are mixed. focused on really this latest news coming out from pimco, the surprising, shocking news that will gross is leaving pimco. i just want to read one headline for you. they are saying they had fundamental differences. the speculation will now begin what those differences exactly where.
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e.r here are the top 10 stories you need to know about today. number 10,tart with a bid forey have one a hepatitis c treatment. it was approved faster than usual because it addresses a major european health challenge. >> the world's biggest chipmaker is taking another shot at raking into the market that runs chips for smartphones. giant's, the tech struggles with its iphone has been linked to another problem. they have issued another a policy -- another apology. >> shares of over 200%.
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analyst with a neutral rating on go pro. ind out when the report at the end of next month. >> beating wall street estimates as corporate commands used in demandrices -- boost in share prices. >> alibaba short-sellers are making their first bets a week after your they price their biggest ipo. short 1.1 million shares, and we are now 3.1 percent of ali baba.
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up slightly in the premarket. >> nike, shares continuing to climb after they posted first-quarter profits that topped estimates. a 15% jump also saw share price. blackberry, the company reached toward at a smaller loss than analysts thought. they are targeting break even cash flow by the end of 2015. janus capital, bill
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gross will be joining them on monday. shares were surging up 31%. is hard of a movement to attract the highest amount of talent. is it a run that is worth more than 38%? or is he worth that kind of an increase in that premium? >> i want to bring in an analyst for the bullpen. -- for the open. what do you make of this? outhere are very few people there who are consistently in front of the media who also run the enormous sons of zoning -- sums of money.
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often have contrary views of the market. if you think of the giant asset managers, they also have unusual takes. he is right a lot. enormous gift for janus. if he wants to go to janice, or wants to escape pimco more. at this point everyone is celebrating the fact he has moved to a new firm. >> he is in his 70's. this point just say i'm going to hang it up? i have made my millions, i am just going to go to a beach and enjoy myself? >> he loves the game. warren buffett is older and he is in there every day. carl icahn. >> a lot of these guys in
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finance. they cannot let go. want to let go. >> they are intellectually driven people who are really good at it. up until the last 18 months when investors started leaving. i think it speaks to the larger point that it is so much harder given the market these days. it is really hard to make a good return now. >> but there are always people that do. bill gross has been running money for decades. he has not always had a call that was perfect, but one of the things that i appreciate about him, is that he really articulates a very interesting framework about how to manage market in the middle of central banking. may be leaving goes to janice
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and deals with a smaller fund and set of assets and will be easier to grow. >> they have activated their succession plan. y are going tou withinuncing a successor hours. >> will be el-erian? >> he is on radio silence. he does not have a management role or any sort of operational role. he is there is a figurehead. he has been having a good time. there was a recent story about him taking a trip with his daughter over in europe. he is writing looks and columns.
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he wanted to spend more time with his family and take a bit of a break. these high finance guys, they cannot take a break forever. in some cases, six months may be too long. certainly there are a lot of people as well who bill gross has been lining up the could take over. they have to reshuffle everything just a bit. we have spoken to the global head of equities now. pimco has an expanding beyond bond funds. we werether big story following was the markets. the question is how low can we go before we see a bounce back? of your estimates you
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say 2% lower he got go >> i do not think this move -- every time you get a selloff and a strong bull trend, everyone inc. this is it. this is the end. if you go back to the july selloffs, everyone was convinced the bull market was over. right now where i expect to equities to get to, the s&p may be down to 1935, that is right t the 30 day moving average. get lower we would need a big new force going on. i do not see that happening. we have this unique feature of a dollars screaming through the roof relentlessly. that may be an argument to lighten up on equities, and certainly companies have strong foreign exposure.
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mean that theit eurozone may be exporting inflation, but we have a strong currency that may take the stance.ed to a dovish fact is, thecal s&p has not broken beneath the 200 day moving average, but the traders are fixated on it. >> the 50 day was some level of support but going through it we have seen that several times this year and has recovered quite nicely. the key level for me to watch as the 130 day moving average. there are other side posts i'm looking at, the russell gets clobbered here. gets crushed through the
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1100 decisively, and trans words which has been a member leader in the first couple quarters of the year, if those continue to trade poorly those might open up new levels for the s&p to go way below this 130 day moving average. >> thank you for joining us. andthank you to scarlet fu julie hyman. as theyhave much more announce a successor within hours. set to be record year for ipos. ♪
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>> pharmaceutical giants are on a mission to your cancer. lesser-known company is also joining that fight and is developing a disruptive technology that is believed all caps or patients will eventually be treated with. confident they will gain the fda approval they need. thank you for joining us. before we get to what you're working on, we were just baking h -- speaking about this whole ipo market. are you glad you came in in june and missed this route of the last few weeks? happy with the
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timing we got. this is just one step in the lifecycle of a company like ours which is developing a treatment that needs to be brought to patients. moreooner we do it with resources the quicker gets to patients. that is what drives us to do what we do. given all the finances that we the ipo, wed in have advanced our programs to more intensive types, and two more indication, and we hope to do it faster. >> hell out of you floyd that money? -- how have you deployed that money. ? >> initially we mentioned one implication per year. we are now working on five different types of cancer,
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working faster toward fda approval. mostat is it you are excited about? , yourre you working on biggest breakthrough? the talent of the people and the alliances. we have a line with the national cancer institute in developing jointly the programs. currently the most exciting work that we are doing is essentially thetically engineer patient's own immune system to fight its own cancer. that is completely different from what we have done before. targeted agents, all of those treatments were fighting the cancer itself, preventing it from proliferating and growing inside the body. we are using the patient's own immune system that is failing because of the cancer, the
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cancer tricks the immune system and the, system cannot function normally. inabilitytoring the of the immune system and now the supercharged,is and can fight the cancer. we are using the t cells in the fighter cells the of the body. we are putting gps in the t cells that they can hold directly to the tumor and destroy it, why restoring normal tissue. tohow close are you bring that to the fda? thee have just announced initial studies. we have a relatively small number of patients that had a -- thatseeing results had astonishing results with
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over 90% success rate with this treatment. now we are moving through the -- we're moving to 25 major cancer centers throughout the united states and we hope by 2016 will analyze the data and submitted to the fda. the fda has never yet approved a drug of that class, so we are in the race of being there early on. >> thank you. ugechnology, a new blog called shell shock could be worse than heartbleed,. . raises concerns about apple
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users, but they say that most users are not at risk? most os x users are not at risk. only if you have downloaded some something special and you have altered the security configurations on your regime. for the most part this is not going to affect technology. this really is about the fundamental architecture that underlies the next. the base operating system that a lot of macintosh works on. all of this is a confusing thing to say if you are an idea engineer -- if you are an i.t. engineer and you are going to be spending long times and many patches to fix this. they said that this was any 10 both in terms of impact and
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lloyd ability -- exploit ability. there is a fix, you just have to download it. >> what about the difference from heartbleed? trick users into giving up a fake password. that was the vulnerability that they found. what this is doing is that it on the backside there is a full durability. it is quite primitive. that is where they can gain access. easy fix, and just have to figure out whether or not your machine, yours rupture needs to be fixed. i.t. engineers are going to have a big weekend. thank you.
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we will be back in two minutes in the loop. ♪
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>> time now for the global outlook. david cameron has told parliament that the fight against islamic state will take years. they are deciding whether or not they should join the u.s. coalition. they would be committed to making a tax only in iraq, not syria. kim jong un is reported as being ill. no other details were given. bill gross leaving the company for janus capital. they will announce the his successor within hours. year, itcourse of this
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became increasingly clear that the firm's leadership and he'll have fundamental differences about how to take them go forward. here's what they had to say about the news. a big loss to the mutual fund industry. he has been a pioneer. changedn many respects the world of bond investing. greatsurely one of the men of the business. he is not in the mutual fund business any longer, we are all impoverished. more onwith us for market makers about this. is edition offor th in the loop. --ing up on monday
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minutes past the hour which means a bloomberg television's only markets. we are 30 minutes into the trading day and right mouse talks are staging a bit of a comeback with the s&p 500 b up by two points. industrials gaining a quarter of 1%. eyere keeping a very close on treasuries as well. we'll take a look at the guild, rising, the 10 year yield up to 2.52%.
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morning iss this that bill gross is leaving pimco to go over to janus capital group run the bond fund. we have to be very clear on is that bill gross is linked to pimco, but he is not the ceo. >> he was the chief investment officer. cio withre as a co- el-erian until el-erian left. does notess side change. the real question is who is going to manage the total return fund which is the against in the world -- the biggest in the world? say they have activated their succession plan which was in place and they will be making an announcement within hours who
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will be running that. this is comingke because the sec is looking into his role? ortho's to something that works for a while? >> there has been a lot of tension at pimco for some time. in that was crystallized el-erian's departure last year. we cannot speculate on why he left now. in may have been that he got infighting, and wanted to get back to running a fund. successot had a lot of in getting returns. it is much harder to do with a larger fund than a smaller f und. is should have some room to operate over at janus. notewas just looking at a
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from montgomery scott and they say that what we are seeing is soft money selling what they believe to be the portfolio ahead of redemptions. >> that is very interesting because we were just talking a foundertes ago with the of vanguard and he did not think this would lead to lots of withdrawals. through 401(k)s, of people choosing, and the managers, choosing what funds you are allowed to invest in. it may not be as much of a damaging move as people think in the short run. >> the timing of the announcement is interesting as well. a lot of people are not in the market today, so it is rarely quiet overall. maybe this announcement is that hoping will -- people won't
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really notice. latest,us with the very we will continue to monitor these headlines as we get them. we will be back on the markets in 30 minutes. ♪ >> bonds, markets bombshell. pimm could he's phil gross leaves the firm he co-founded to join rival janice capital. hundreds of billions of dollars hang in the balance. we'll tell you what's behind the stunning move. >> mason builder. he built up a personal fortune valued at five billion bucks. o'brien wants to rebuild an entire country. >> gender gap on the gridiron. it's the national football league going to win more


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